After catching up on the posts in this thread I'd like to add a bit more. And I changed the subject.

I think there is some confusion between "revenue" and "net profit." I can build a computer and sell it for $1,500.00 and each and every one I build costs me $1200 to build. I made $300 or 20% mark up.

If I sell software let's say my per unit cost are $20, I have it in a nice package for that high of a cost. I sell it for $80. I made $60 per unit or 75% margin.

No I didn't add development costs, both are high. But the bottom line software distribution is dirt cheap. That's why anyone who is a clever programmer with a cool product can open up shop on the internet and distribute via the web and his costs are negligible. He or she might make $98%.

On Aug 31, 2006, at 12:22 PM, John Denning wrote:

Apple does indeed make money on hardware, but software has a MUCH greater profit margin. I'd bet that apple's greatest net profit centers are it's software products, not it's hardware.

On Aug 28, 2006, at 8:29 PM, Access Curmudgeon wrote:

Apple makes money selling hardware, the profit on OS X is really
pretty marginal compared to that, although I am sure it pays for
itself.

    - JD -
John Denning
AIM: [EMAIL PROTECTED]
A+ MCSA MCSE
And glad to be a Mac snob again!
Roswell, GA




    - JD -
John Denning
AIM: [EMAIL PROTECTED]
A+ MCSA MCSE
And glad to be a Mac snob again!
Roswell, GA



Reply via email to